Short Course on “Benchmarking and productivity analyses – with economic applications” , November 2020, Denmark

Benchmarking and productivity analyses – with economic applications and extensive hands-on activities

PhD School in Economics and Management at CBS

Course dates
09 November 2020 – 13 November 2020
Professor Peter Bogetoft
Copenhagen Business School
A basic knowledge of quantitative methods and statistics is desirable, but the course will refresh the participants’ prior knowledge as we go along. The course will emphasize actual applications in research and consultancy, and will l train the use of opens source softwares like R. Participants are expected to bring their own notebooks to benefit fully from the hands-on activities.
The aim of this course is to introduce the participants to the theory and practice of performance evaluations and their usages in research, policy analyses, incentive schemes and regulation.
Course content
Background: Productivity and efficiency analysis is a rapidly growing, interdisciplinary field of research in economics, management sciences, and statistics. In addition to the empirical research on the magnitude, direction, and sources of productivity growth, this literature has produced quantitative methods such as data envelopment analysis (DEA) and stochastic frontier analysis (SFA), which have diffused beyond their traditional confinement to production settings. These tools are used in many different application areas including environment, development studies, education, finance, health care studies, natural resource management, public economics, and sports studies, among other fields. The tools and approaches of productivity analysis are equally well suited for micro-level analyses of firms and other decision-making units as well as macro-level cross-country comparisons. Integration with incentive theory, mechanism design and decision support systems makes the tools relevant also in normative applications
Teaching style
The course (5 ETCS) stretches over five days. Each day will consist of lecturing in the morning and part of the afternoon followed by conceptual discussions, presentation of applications, and hands-on exercises in the afternoon.
Lecture plan
Teaching Plan (Tentative)

Monday Lecture Readings
9-10 Course Introduction
10-12 Introduction to Benchmarking – From Academic Studies to Managerial Advice BoOt11 Ch1, Bo12 Ch1
12-14 Regulatory Benchmarking BoOt11 Ch10, Bo12 Ch9
14-15 Efficiency Concepts BoOt11 Ch2, Bo12 Ch2
15-16 Getting started with R BoOt11 AppA+ Bo12 App A+Software Packages R-package
 9-10 Basic DEA BoOt11 Ch3+4, Bo12 Ch4
 10-12 Advanced DEA BoOt11 Ch4+5
 12-14 The Benchmarking Process 1: Data Collection and Cleaning Selected applied reports
14-16 Applications To be decided
 9-11 Statistical analyses in DEA models BoOt11 Ch6
 11-13 The Benchmarking Process 2: Model Specification Selected applied reports
13-16 Appplications To be decided
 9-11 SFA and other parametric approaches BoOt11 Ch7+8, Bo12 Ch5
 11-12 SFA in Benchmarking and Frontier packages BoOt11 Ch8+Frienter R package
 12-14 The benchmarking process 3: Model Validation and Robustness Selected applied reports
14-16 Applications To be decided
 9-11 Mergers and Quota Trade BoOt11 Ch9, Bo12 Ch7, AB07
 11-12 Benefit-of-doubt measures BoWi20
 12-14 Rational efficiency, DEA based autions and other additional topics BoHo03, BoKe20, BoNi08
14-15 Applications To be decided
15-16 Evaluation, diploma and goodbye

Lunch will be served around 12’oclock and in the morning and afternoon, coffee ect will be available during the lectures.

Learning objectives
Specifically, the objectives are:

– To provide a basic understanding of state-of-the-art benchmarking, efficiency and productivity analyses methods using Data Envelopment Analyses (DEA), Stochastic Frontier Analyses (SFA) and related methods.

– To provide training in the actual usage of such methods and associated software on different applications

– To discuss the usage of performance evaluations to evaluate economic systems and to design decision support, reallocation mechanisms and incentive systems.

A course certificate for the course is granted based on attendance and active participating.
Start date
End date
Course Literature
The course will draw of original literature (articles) supplemented by text-book treatments:

– BoOt11: Bogetoft and Otto, Benchmarking with DEA, SFA and R, New York, pp. 1-351, 2011

– Bo12: Bogetoft, Performance Benchmarking: Measuring and Managing Performance, Springer, New York, pp. 1-255, 2012.

– R-package “Benchmarking”, newest version

– IB-manual, Interactive Benchmarking, newest version

– Applications

– Will be slected based on students interests. Typically regulation, eduction, health, industry

– 4-5 original articles

– Additional topics, including

– BoHo03: Bogetoft and Hougaard, Rational Inefficiency, Journal of Productivity Analysis, 20, pp. 243-271, 2003.

– BoKe20: Rational Slack, WP

– NoNi08: Bogetoft and Nielsen, DEA Based Auctions, European Journal of Operational Research, 184, 685-700, 2008

– BoWi20: Bogetoft and Wittrup, Benefit-of-the-doubt approach, WP

For full course description and course registration please visit the PhD website.

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